The Durable Power of Attorney Is a

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One of the four legal documents that each adult in the United States needs is a "durable power of attorney." A durable power of attorney is a highly standardized legal document signed by an individual.

The durable power of attorney allows another person to take over control of the individual's assets and business affairs when the individual becomes incompetent or otherwise unable to manage for him or herself. If you make out a durable power of attorney, you will be known as the "principal" and the one who will take over for you is called the "agent." The durable power of attorney has a provision in it that states that the powers of the agent will "endure" after the principal is incompetent. A general power of attorney won't have such a provision. A general power of attorney becomes ineffective if the principal is later determined to be incompetent. Over time it became obvious that a power of attorney is more important after a principal is determined incompetent and unable to function. Finally, laws were passed which made it so a power of attorney could "endure" after the incompetency of the principal.

While the importance of a will and revocable living trust is well known, many overlook the critical necessity of a durable power of attorney. It is more likely that you will be judged incompetent or unable to manage your affairs in the next month than it is that you will be dead. In the eyes of the law, it is easier to deal with a dead person's assets than an incompetent person's assets.

Without the durable power of attorney, a family will have to have a court proceeding to have a family member declared incompetent and someone appointed as their agent or "conservator." A durable power of attorney should contain an important clause that will be used to determine when an individual is incompetent. A properly written durable power of attorney will allow the family to forego any court intervention for the transfer of responsibility to the agent. Usually, the durable power of attorney will say that the principal can be declared incompetent, for purposes of the durable power of attorney, if two doctors sign a statement saying that the principal can't manage their business transactions any longer. Sometimes a combination of clergy, trusted family members, or medical specialists can be used to verify a principal's incompetency.

A principal's affairs will be well taken care of if appropriate powers are given to the agent in a durable power of attorney. The agent can also be directed in the durable power of attorney to manage the social, religious, and medical issues of the principal. One type of durable power of attorney only deals with medical issues; therefore it's called a "medical durable power of attorney." Some attorneys combine the durable power of attorney, medical power of attorney, Health Insurance Portability and Accountability Act (HIPPA) agreement and living will into a single document.

Every adult in your family should have a durable power of attorney. Choose the form or arrangement that best fits your needs. You just sign the forms and put them in the filing cabinet. A durable power of attorney can come to the forefront and save you time, money and aggravation at the time of a family or individual hardship.

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